The Dreamseller (1990)

A schoolboy Karim, who is fond of electronics, unexpectedly finds himself in a fairyland, in the laboratory of the wizard Ogima, who has been looking for a capable student for a long time. Ogima comes up with dreams - sweet and funny, being sure that he is doing good for ordinary people. It turns out that more than two people need to stand in a circle around a magic mirror and hold hands — then everything you dream about will come true.
But the ruler makes the last move — she has released all dreams, people can sleep for 100 years.